Residents feared the development would double the population in their small forest bound suburb. (9NEWS) (9news)

Resident Annamarie Newton feared a bushfire or flood emergency with too many people trying to funnel out of the one exit.

"If there's an emergency and we only have one access point in and out of this suburb ... they'll be a stampede," she said.

In a statement given to 9NEWS, on behalf of the developers, Southway Services 2, explained their application to change the site from industrial use to residential may help improve the suburbs property values.

"Currently being zoned industrial will allow 'as of right' buildings up to 9.5-metre high and three to five meters from the boundary and can go to 15 meters after a set back of approximately 20 meters allowing for an industrial precinct," Southway Services 2 stated.

"This may have adverse effects to local residential property values. In terms of residential the current application demonstrates equivalent to a two-storey town houses facing the street and less than 15 meters at the rear of the site."

The residents are hoping to meet with developers and help design a new plan that they can endorse.

"We want a win win for everybody but we have to be at that consultation table," Ms Newton said.